Instacart upgraded to Buy from Hold at Jefferies

Jefferies analyst John Colantuoni upgraded Instacart (CART) to Buy from Hold with a price target of $45, up from $38. The firm says internet multiples have fallen 25% year-to-date and now trade at a record 30% discount to the S&P 500 Index, primarily on AI disintermediation concerns. However, recent developments suggest internet “is evolving into an AI beneficiary,” the analyst tells investors in a research note. Jefferies sees a buying opportunity in Instacart following the pullback. The company is positioned to beat consensus estimates, trades at “notable growth-adjusted” discount, and is less exposed to geopolitical risks, contends the firm.